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4Q11 Lithium Battery Market Stabilized by Chinese New Year Demand Surge

published: 2012-01-03 16:12

NB Battery’s Stagnant Demand Showed Signs of Rebound

According to EnergyTrend, the green energy research division of TrendForce, due to the persisting weak demand for notebook in December 2011 and the initial production downsizing taking effect, the price drop of battery cells has decreased to below 1.5%. However, in addition to the uncertain economic outlook, the standstill of assorted components’ development and the lack of new notebooks releases by the big brands stagnated the market, which resulted in the bleak demand that continued to impede battery makers.

Nonetheless, based on the shipments of components including battery, the market has shown a minor demand surge, which EnergyTrend refers to the fewer working days in January 2012 due to the Chinese New Year holiday and the expected labor shortage in February. The impending Chinese New Year holiday revived the dreary market outlook.

Lithium Polymer Battery Cell Prices Experienced More Drastic Drop

At present, iPad, Kindle Fire and Galaxy Tab are the stars in the tablet market, and each of them owns a fair amount of market share, which changes the landscape of the tablet PC market that used to be dominated by one particular product. Under the circumstances, the dynamics of the battery cell market started to shift as the Chinese lithium polymer battery makers took more aggressive actions. To further the difference between products, top-tier manufacturers have increased the energy density and lifespan of their lithium polymer battery cells, which will in turn cause their prices to go up. Enhancingthe products while maintaining consumer-friendly prices becomesa new focus of the industry.

As for the mainstream products such as iPad, the demand for components decreased considerably as it entered the transitional period, which caused the prices of lithium polymer batteries to dip by about 2% averagely. It marked the first time in 2011 the lithium polymer battery cell prices plummeted more than lithium cylindrical ones.

Looking toward 2012, the demand and supply and price changes of lithium polymer battery cells will affect whether the thin type batteries can develop well with the progression of operating systems and processors. Moreover, the new products stir up a change in the cylindrical battery industry. Whether or not Taiwanese battery pack makers are able to win business from the big names in terms of new products and the shift in supply status are the worth noting issues in 2012.

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